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October 7, 2021
How the operations of TNCs connect places

How the operations of TNCs connect places

The abbreviation TNC stands for Transportation Network Companies. This is a new term that describes an increasingly popular method of finding personal travel, fast. TNCs provide users with transportation through an online platform that connects them to drivers that are nearby.

How the operations of TNCs connect places

We’ve probably all heard of companies such as Walmart, Amazon, Apple, and Shell, and these are all examples of Transnational Corporations – in fact, these four all feature in the top 10 global companies by revenue in 2020. Some of the others you may never have heard of because they don’t have such a public face.

The key characteristics of TNCs are:

They seek competitive advantaged and maximization of profits by constantly searching for the cheapest and most efficient production locations across the world
They have geographical flexibility – they can shift resources and operations to any location in the world
A substantial part of their workforce is located in the developing world, but often employed indirectly through subsidiaries.
TNC assets are distributed worldwide rather than focused in one or two countries – for example, 17 of the top 100 TNCs have 90% of their assets in a different country from their head office.

The Huge Economic Power of TNCs

TNCs are economically very wealthy and thus potentially more powerful than many of the world’s nation states.
Free Trade Zones offered incentives such as infrastructure provided by the government (transport links), few planning controls on building, and low taxation. There are now over 5000 free or export processing zones in the world today which employ over 43 million workers, the majority of which are based in China’s territories.
Examples of TNC… for more information HOME • Classy Essay

How the operations of TNCs connect places

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